Investigation into Severance Package
Edinburgh's council leader has launched an inquiry into a £327,000 severance payment awarded to Lea Harrison, the former managing director of Edinburgh Trams.
Harrison departed from his role in January following the merger of the Edinburgh Trams board with that of Lothian Buses, creating a unified transport operation.
Unite the union has criticized the payout, describing it as an "excessive golden goodbye," and has urged Edinburgh city council to review governance procedures related to the payment.
Council leader Jane Meagher expressed significant concern regarding the size of the severance and requested that the new board investigate whether the payment received appropriate approvals.
Meagher stated that the payout was authorized by the former Edinburgh Trams board and noted that the council now has a "new relationship" with the company.
"I cannot see any justification for someone already on such a high salary receiving this type of pay-off for leaving their job."
"We have written to the chair of the new board asking them to investigate whether proper procedures and board approval processes were followed in the agreement of this package."
She further indicated that the council has enhanced its oversight and reporting mechanisms to ensure such occurrences do not happen again.
Board Merger and Leadership Changes
The boards of Lothian Buses and Edinburgh Trams were merged in late 2025 as part of Edinburgh's broader transport reform initiative.
Sarah Boyd was appointed as the new chief executive responsible for managing both transport networks.
Following his departure from Edinburgh Trams, Lea Harrison assumed the role of managing director at Blackpool Trams in March.
Additional Severance Payment Controversy
Unite also revealed that Lothian Buses authorized a separate £120,000 payment to a former director, details of which will be presented to Edinburgh councillors in a meeting scheduled for Thursday.
Unite industrial officer Lyn Turner raised concerns about the governance surrounding these payments.
"Serious questions arise about why such excessive golden goodbyes were authorised by both Edinburgh Trams and Lothians Buses. Where was the governance?"
"An immediate inquiry must be held by the council because it appears that there were no proper checks and balances in place."
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